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From: Mike .


Investment Property & Overseas Employment
From: Ross
Date: 3/29/00
Time: 11:37:21 PM

I was employed in a steady job for 1.5 years earning $36k p.a and looking to buy my 1st investment property, when I was successful in landing a job overseas (on a cruise ship) where my income was greatly reduced.

I was told that since the income would be reduced dramatically and I was to DISCLOSE this on any given application from the bank, that the loan would not have been approved.

But if the purchase worked out to be at minimal cost to myself, I could have sent home the money to cover my expense...(naturally the 221D would not be applicable).

Did I do the right thing in not going ahead?

Also, is it a great advantage to be in your own property (either own it/pay mortgage) to purchase an investment property? I am single and have been paying rent for 8 years, but I have $50k approx at my disposal. Can I still buy a investment property...or would that be silly since I still have no place of my own and still have to rent?

Confused and chasing my tail, Ross

 

[WebBoard]

Crystal

Reply: 1
From: Mike .


Re: Investment Property & Overseas Employment
From: Crystal
Date: 3/31/00
Time: 6:03:11 AM

Hi Ross, I don't own my own home and just bought my first investment property and intend to keep buying them. There is no reason why you should buy a property for yourself. Use that money to buy IPs and rent where you want to live and move whenever and wherever you want to! When you have lots of IPs you will be able to afford the type of house you really want to live in.

 

[WebBoard]

Les

Reply: 1.1
From: Mike .


Time for another plug???
From: Les
Date: 4/1/00
Time: 6:27:19 PM

Exactly right, Crystal, and if I had my time over, that's what I'd do.

An old friend of mine told me (with regard to buying property) "First, get on the train! You can always change carriages". He helped us into our first home ($17000 in 1973 in Auckland - we sold 9 years later for $45000).

Ross, a way to "Get on the train" would be to buy in a lower-priced area with a better rental return that would allow you to put 20% or 30% into the deal and still pick up a good quality house. By buying (say) a $120k to $140k house in Brisbane, with rent of probably $190/week, and a 25% deposit ($35k), your return would undoubtedly be positive, even with no Tax Deductions applicable.

Might be just the way to put $50k into bricks and mortar, have someone else pay for it, and give you Capital Growth while you go off and enjoy yourself on "the Love Boat" ;^)

Les